IRS Warns Obamacare Tax Credit Recipients

The Internal Revenue Service is sending letters to taxpayers who received advance payments of the premium tax credit in 2014, but who have not yet filed their tax returns.

The IRS is warning them they must file a tax return to reconcile any advance credit payments they received in 2014 and to maintain their eligibility for future premium assistance. If they do not file, they will not be eligible for advance payments of the premium tax credit in 2016, according to the IRS.

Those who receive a Letter 5591, 5591A or 5596 are being reminded to file their 2014 federal tax return along with Form 8962, Premium Tax Credit.

The letter encourages them to file within 30 days of the date of the letter to substantially increase their chances of avoiding a gap in receiving assistance with paying Marketplace health insurance coverage in 2016. Source: Accounting Today.